The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Michelle Ridge.
DIGEST
SB 152 Original 2022 Regular Session Abraham
Present law provides for unauthorized acts of a motor vehicle manufacturer, distributor, wholesaler,
distributor branch, factory branch, or converter.
Present law prohibits a manufacturer, distributor, wholesaler, distributor branch, factory branch,
converter, or officer, agent, or other representative thereof from conditioning the renewal or
extension of a franchise on a dealer's substantial renovation of the dealer's place of business or on
the construction, purchase, acquisition, or rental of a new place of business by the dealer, unless the
manufacturer has advised the dealer of its intent to impose such condition within at least 180 days
of the proposed date of renewal or extension and has met certain other conditions.
Proposed law removes present law prohibition and provides for the following unauthorized acts of
a manufacturer, distributor, wholesaler, distributor branch, factory branch, converter, or officer,
agent, or other representative thereof:
(1)To condition the renewal or extension of a franchise on a dealer's substantial renovation of
a facility or premises if the renovation would be unreasonable under the circumstances.
(2)To require, coerce, or attempt to coerce, a dealer or successor dealer to construct or
substantially alter a facility or premises if the construction or alteration would be
unreasonable under the circumstances.
(3)To require, coerce, or attempt to coerce, a dealer or successor dealer to construct or
substantially alter a facility or premises if the same area of the facility or premises has been
constructed or substantially altered within the last 10 years and the construction or alteration
was required and approved by the manufacturer as a part of a facility upgrade program,
standard, or policy. Excludes certain construction or alterations. Provides that a cancellation
or change in a facility upgrade program, policy, or standard does not impact any payment and
benefit to a dealer who was participating in that program prior to the cancellation or change
in the program, unless agreed upon by the parties. Provides that as part of the program,
policy, or standard the manufacturer or distributor shall agree to supply the dealer with an
adequate supply and marketable model mix of motor vehicles to meet the sales levels
necessary to support the increased overhead incurred by reason of the construction or
alteration.
(4)To require, coerce, or attempt to coerce, a dealer to purchase certain goods or facility
construction or maintenance services from a vendor that is selected by a manufacturer,
distributor, affiliate, or captive finance source when the dealer may obtain goods or facility
construction or maintenance services for items of the same quality, material, and design from a vendor selected by the dealer, provided the dealer obtains prior approval from the
manufacturer, distributor, or affiliate for the use of the dealer selected vendor. Provides for
the filing of a protest with the commission if the vender is not approved by the manufacturer
and provides for that procedure.
Proposed law defines "substantially altered" and "goods".
Effective August 1, 2022.
(Amends R.S. 32:1261(A)(1)(l))